There is distressing news for company owners who have an ATO debt from 1st July 2017. Small businesses need to be careful of ATO Bankruptcy since the ATO may reveal information of your tax debts to credit reporting agencies such as Veda Advantage and Dun & Bradstreet. This will make it much more complicated for small businesses to purchase credit, potentially paralysing them. How could this have an effect on you? You may be affected if you fit into one of the following 3 categories:
- Have an ABN (i.e. you own a business and/or you are a contractor);.
- Have past debts with the ATO that are more than $10,000 and are more than 90 days overdue; and.
- You are not in any type of payment hpw arrangement with the ATO.
Just so you’re aware, the ATO must first inform you before they unveil your debt details to any credit agency.
If your ATO debts seem to become unmanageable and you don’t want your credit rating defaced then you have at least one viable option: Enter into a payment arrangement with the ATO. This may protect you from ATO Bankruptcy.
Alternatively, if you think there is simply no hope or the ATO is threatening litigation against you because of your unpaid ATO debts, then bankruptcy may be a rational option for you. If you want to know more about how to get out from under the debilitating burden of personal or business debts, just get in touch with us here at Bankruptcy Experts Perth on 1300 795 575 or visit our website for more details: www.bankruptcyexpertsperth.com.au.